Which of the following best describes a gross material requirements plan?
A) a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started
B) an intermediate range plan for the scheduling of families of products
C) a chart illustrating whether capacity has been exceeded
D) a table that corrects scheduled quantities for inventory on hand
E) a schedule showing which products are to be manufactured and in what quantities
A
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Prototyping may seem to be an ideal way to overcome the shortcomings of "traditional" SDLC methods, but it may create its own serious problems, such as ________
A) inflexibility B) balanced architecture C) the illusion of completeness D) none of the above
Sales mix, two products
The Stackpole Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: Standard Carrier Deluxe Carrier Total Units sold 187,500 62,500 250,000 Revenues at $28 and $50 per unit $5,250,000 $3,125,000 $8,375,000 Variable costs at $18 and $30 per unit 3,375,000 1,875,000 5,250,000 Contribution margins at $10 and $20 per unit $1,875,000 $1,250,000 3,125,000 Fixed costs 2,250,000 Operating income $ 875,000 Required: 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix. 2. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3. Suppose 250,000 units are sold but only 50,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this problem?